The latest stimulus package, which is a whopping $42 billion, aims to create 90,000 jobs. But once again most of the true job creators in the economy miss out.
Of course the $42 billion package is great news, and people in the construction industry and involved with other infrastructure projects should be rubbing their hands. The announcement that small business and other general businesses buying eligible assets will benefit from a 30 cent in the dollar investment tax break is also good news.
But this package is meant to be about creating jobs. Now. This year. And to stop employers laying staff off because they simply don’t have the money to pay them.
There is a very simple way to ensure that more jobs are created. Assist the job creators. The job creators in any developed and emerging country are the small and medium businesses who employ staff and want to grow. It is these businesses that create the bulk of new jobs year on year.
It is these companies that are also SmartCompany readers.
They told us today the way they can create more jobs is to cut payroll taxes and business taxes. This will immediately help their cash positions and enable them to retain their staff.
In a poll of 102 small and medium businesses 48% want payroll tax and business tax cuts. A further 22% want some type of assistance. Only 20% say infrastructure spending will help them create jobs, and only 10% say that income tax cuts will help them create jobs.
And it makes sense. At the moment there is a cashflow crisis. And Dun & Bradstreet estimates that one in nine businesses are at risk. A majority of businesses are certainly finding it tough going.
While the stimulus today might help the economy generally, it is another wasted opportunity to truly target and assist the job creators.
What do you think of the stimulus package? Will it help? Is it a waste of time and taxpayer money? Send in your thoughts to feedback@smartcompany.com.au
